Contractor Success Map with Randal DeHart | Contractor Bookkeeping And Accounting Services Randal DeHart | Construction Accountant |PMP | QPA

This Podcast Is Episode 580, And It's About  Improving Construction Communication And Workplace Productivity The success of any business, large or small, depends largely on nurturing an efficient, productive workplace. While improving employee productivity should always be a priority when the ultimate goal is a sustainable and profitable business, the process is more straightforward said than done. 
 
In today's fast-paced construction industry, staying in touch and being productive is crucial for project success. The good news is that technology has made it easier to streamline processes and enhance team collaboration.
 
One of the most impactful ways technology has improved construction communication is through user-friendly mobile applications and project management software. These tools allow for real-time communication, easy document sharing, and smooth task management, reducing the delays and errors often associated with traditional communication methods.
 
Moreover, Building Information Modeling (BIM) technology has transformed how construction teams work together. BIM fosters better communication and collaboration by providing a centralized platform for sharing 3D models and project data, ultimately leading to more efficient decision-making and problem-solving.
Another astounding technological advancement that has significantly boosted workplace productivity is the integration of wearables and IoT (Internet of Things) devices. These innovations enable real-time tracking of equipment, materials, and the workforce, leading to optimized resource allocation and enhanced safety measures on-site.
Would you like to implement better practices while staying on budget? These are some of the most effective methods of managing a productive, happy workplace while increasing output:
Embrace Technology
While many construction workplaces still see new technology, as mentioned above, as unnecessary or even distracting, the simple truth is that it can significantly impact productivity. Updated hardware, software, and machinery ensure that work can be performed quickly and with minimal error. While it may not seem like a big deal, even minor issues, such as temporary connectivity problems or hardware breakdowns, can quickly add up throughout a fiscal year.
Start small, like incorporating better project management software and bookkeeping processes. If this overwhelms you, let me know how I can help.
Avoid Excessive Micromanagement
There is no denying that management is crucial, but too much of a good thing can adversely affect productivity. Instead of encouraging employees to put forth their best efforts, it results in an eventual dependence on micromanagement that can sink productivity levels.
Excessive micromanagement can be detrimental to productivity and morale in a construction workplace. To avoid this, it's essential to focus on
Hiring and training competent employees so you can have confidence in their ability to perform their tasks without constant oversight. Clearly defining the project objectives and individual responsibilities can help employees understand what is expected of them, reducing the need for micromanagement. Encouraging open dialogue and feedback can help employees feel empowered and trusted, reducing the need for constant supervision. Delegating decision-making authority and autonomy in their areas of expertise, reducing the need for constant oversight. Implementing project management tools and software can provide real-time visibility into task and project progress, reducing the need for constant check-ins. Providing constructive feedback and support, allowing employees to learn and grow. Recognize Success
Just as employees must be held accountable for their actions, they should also be recognized for their success. Even small efforts, such as verbal recognition or occasional awards, can encourage employees and make them feel like their hard work is being rewarded. For businesses that

This Podcast Is Episode 579, And It's About  How To Build Construction Business Systems That Deliver Results In the competitive construction industry, implementing efficient business systems can make a significant impact on the overall success and profitability of a construction business, regardless of its size or specialization. From streamlining operations to improving project management, adopting efficient systems can yield tangible benefits that truly pay off in the long run.
 
Too many businesses fail because the owner needs to establish efficient business systems. This typically happens because the business owner is so caught up in the company's day-to-day running that the fundamentals of good business management are forgotten. Often, it must be said that the owner doesn't like bookkeeping or other administrative tasks, so these get put on the back burner.
 
The symptoms are familiar, and their results are disastrous:
Poor or non-existent record-keeping. Tax obligations still need to be met. Invoices go out late, and debts remain uncollected. There is one cash flow crisis after another. Goods and services should be correctly costed and priced. Any of these factors can lead the construction business down the slippery path to failure, but all are avoidable. The whole point of implementing sound systems is that they free you to spend more time working on your business, not in it.
Sound business systems will strengthen, improve, and simplify your business. They will also make your construction business far more attractive to future buyers. If you have developed clear operating and procedure manuals, your business will be seen as an independently viable unit and less dependent on you.
Here are five steps to a better construction business:
Good record-keeping and bookkeeping will help you keep on-side with the Internal Revenue Department. You'll sleep better at night if you can meet your tax obligations through sensible planning. You won't fear a tax audit, and you'll know how your business is doing. You won't be caught by a 'sudden tax demand out of the blue' because no such thing exists for a well-run business. You should always know which taxes are due and when. You'll suffer less stress.

Good business planning will help you set goals for your business and take specific steps to achieve them. Without goals, where do you think you're going? Running a business without goals is like arriving at an airport and saying, "I'd like to go somewhere." The person at the ticket desk would think you're clueless!

Good cashflow forecasting will enable you to anticipate a possible cashflow problem (something all growing businesses experience occasionally) and take steps before the situation becomes a crisis. Banks will respect you if you anticipate issues and make plans in advance. Banks will not respect you—and will indeed categorize you as incompetent—if you tell them you've been 'caught out' by a crisis. Banks don't like crises. They want you to go to them well before any possible crisis with a plan. This shows them you're in charge of your business.
Good creditor and debtor control will improve your cash flow. Invoicing promptly and collecting debts on time gives you the cash to pay suppliers on time and get more favorable credit terms from them. It is a virtuous circle. Sloppiness in this department is one of the most common (and unnecessary) causes of business owners experiencing stress and anxiety. So pay your creditors on time and don't let your debtors use you as a free banking service.

Realistic pricing and costing will ensure you run your business competitively but profitably. Poor skills could mean operating at unrealistic levels—even at a loss. For example, your profits will erode if you let costs (such as overhead costs) get out of hand. There is no point in increasing sales if you're not increasing your profits. One key area where efficient business systems can make a difference is projec

This Podcast Is Episode 578, And It's About  Utilizing The Power Of Financial Modeling In The Construction Industry n the ever-evolving world of construction, financial modeling is a game-changer. It drives intelligent decision-making, minimizes risks, and ensures the revenue health of projects. Crafting precise and insightful financial models is a valuable tool for construction companies. It offers a panoramic view of the asset landscape and enables proactive planning and strategic management.
 
Financial models are invaluable tools designed to help you understand and protect your business's economic health. By simulating different scenarios and examining potential outcomes based on various inputs, such as sales growth, margins, and cash flow, these models provide a comprehensive picture that aids in informed decisions.
 
1. Precise Cost Forecasting and Budgeting
Financial modeling empowers construction companies to predict costs accurately, considering many factors such as material costs, labor expenses, equipment outlays, and overheads. Companies can develop precise project budgets by creating detailed financial models, spot potential cost overruns, and implement strategies to monitor expenses. This foresight allows for proactive cost management, preventing financial surprises that could impact project profitability.
Start by creating a base financial model incorporating your current financial data. Input variables such as projected sales, estimated expenses, and planned investments allow you to forecast your financial performance across different scenarios. By simulating best-case, worst-case, and most-likely scenarios, you'll be better prepared to navigate potential challenges and seize opportunities.
Action Tip: Develop your initial model using spreadsheet software or financial modeling tools. Regularly update it as new data becomes available.
2. Streamlined Cash Flow Management
Effective cash flow management is crucial in construction, where substantial capital outlays are often needed before revenues are realized. Financial modeling enables companies to map out cash flows over the project's lifecycle, identifying potential bottlenecks and ensuring adequate liquidity is maintained to support ongoing operations. By optimizing cash flow through meticulous financial modeling, construction companies can enhance their financial stability and seize growth opportunities.
Presenting a detailed financial model can significantly enhance your credibility with lenders and investors. It demonstrates your understanding of your business's financial position and showcases your preparation for future growth.
Action Tip: When seeking financing, ensure your model includes comprehensive projections showing how the funds will be used and the expected return on investment.
3. Informed Decision-Making through Scenario Analysis
Financial modeling allows construction companies to conduct scenario analysis, assessing the potential impact of various factors on project outcomes. Whether it's changes in material costs, fluctuations in interest rates, or delays in project timelines, scenario analysis helps companies evaluate the financial implications of different situations and develop contingency plans to mitigate risks. This proactive approach to risk management is invaluable in an industry where unforeseen challenges can have significant financial repercussions.
Financial models serve as robust decision-support tools. They help you evaluate the economic implications of various choices, whether setting pricing strategies, launching new projects, or considering investment opportunities.
Action Tip: Before making substantial business decisions, use your financial model to conduct a cost-benefit analysis. This will help you weigh the pros and cons and align decisions with your financial goals.
4. Assessing Project Feasibility and Profitability
By incorporating revenue projections, cost estimates, and financing structures in

This Podcast Is Episode 577, And It's About  Mastering Construction Business Finances Through QuickBooks Desktop The power of effective bookkeeping using QuickBooks Desktop - plus an Important Update from Intuit.
Keeping track of sales, earnings, expenses, and purchases is fundamental to your construction business's overall health and sustainability. Effective bookkeeping produces the data you need to evaluate your current practices, anticipate challenges, and set attainable future goals.
Many business owners dread bookkeeping and accounting tasks despite their proven importance. In fact, 40% of surveyed entrepreneurs claim that bookkeeping is one of the worst parts of running a business!
Is it worth the aggravation?
Here are three reminders of how effective bookkeeping is the cornerstone of small business success:
Keeping track of reimbursable expenses
A reliable system for tracking reimbursable expenses ensures you reap all the benefits you're entitled to when filing your taxes. Expenditures sorted into categories, such as "food," "travel," and "office supplies," can be cataloged quite simply with online bookkeeping software.
Using a dedicated credit card for business expenses and updating your records every month will put money back in your pocket come tax time.
Measuring profitability and planning for the future
To grow your business, you must be able to track and compare its finances from one year to the next.
In addition to reconciling the books and bank statements every month, effective bookkeeping generates records you can use to gain a comprehensive overview of your business. This data can help you:
Measure year-over-year profits; Identify opportunities to cut costs; Plan for major expenses (such as new office space, equipment, or staff) and develop data-based strategies for expansion. Preparing for tax season
Few things are more stressful for business owners than scrambling to prepare poorly maintained financial records for tax season. In addition to the panic of last-minute filing, inaccurate or incomplete documentation can lead to severe penalties, fines, and an audit.
In the United States alone, 40% of small businesses pay an average penalty of $845 per year for late or incorrect filings!
Sound bookkeeping can save you money and give you peace of mind. You'll be assured of compliance with regulations and receive a reliable estimate of amounts owing long before your tax bill is due.
If you've been following us over the years, you know that we are raving fans of Intuit, the makers of QuickBooks, and have used QuickBooks since the first version was released in 1992. In fact, in 2005, we moved our entire client base, including our own accounting firm's QuickBooks files, to an Intuit-approved commercial hosting environment so we could offer our clients all of the benefits of the full desktop version of QuickBooks accessible online 24/7, and it has been a huge success!
We've always encouraged our contractor clients to use QuickBooks Desktop as QuickBooks Online does not offer the full features of QuickBooks. We know that QB Desktop in the Cloud is one area where you can reduce your overhead and increase productivity quickly and easily. 
It is a powerful tool that can streamline your accounting processes and provide valuable insights into your company's financial health. Here are some reasons why using QuickBooks Desktop is crucial for your construction business: 
1. Industry-Specific Features: QB Desktop offers industry-specific features tailored to the needs of construction businesses. You can track job costs, create estimates, and manage progress invoicing, which is essential for staying on top of your projects' financial aspects. 
2. Robust Reporting: QB Desktop provides robust reporting capabilities, allowing you to generate customized reports to analyze your business's performance. You can track profitability by project, compare actual costs to estimated costs, and monitor cash

This Podcast Is Episode 576, And It's About  How To Build Up And Stand Out By Delighting Your Construction Clients Most businesses understand that customer satisfaction is crucial to their success. Happy clients are likelier to remain loyal, refer others, and leave positive reviews. This trend has only been amplified by social media and online review sites, where negative feedback can spread quickly and damage a company's reputation.
In an increasingly competitive marketplace, more than an effective customer service system is needed: you must provide customers with a positive and memorable end-to-end experience at every touchpoint. Creating powerful experiences that exceed consumer expectations can have massive implications for any business — from increasing brand loyalty and trustworthiness among current clients to being highly attractive to potential customers. 
It starts with understanding the difference between traditional customer service expectations and modern customer experience strategies. Keep reading as we explore the nuances of each approach and discuss how construction businesses like yours can strive towards offering excellent experiences in their markets.
Defining customer service and customer experience
When we talk about customer service and experience, it's not just about providing a product or a service. It's about the way you make your customers feel. Customer service is all about delivering the product or service in a way that exceeds expectations and meets the customer's needs. 
But the customer experience is entirely different. It's a holistic approach that considers how your customers are impacted from the minute they interact with your brand to long after they purchase or hire you. It's about creating an emotional connection with your clients and leaving a lasting impression. 
So, whether you're a small construction business owner, understanding the power of customer service and customer experience can take your brand to the next level.
The importance of customer service in the business
Have you ever walked into a store and received terrible customer service? Maybe the employee didn't acknowledge your presence or seemed annoyed when you asked a question. It's a frustrating experience and can leave a bad taste in your mouth about that business. 
That's why having good customer service is essential in any industry. It's not just about making a sale; it's about creating a positive experience for the customer. When customers feel valued and heard, they are more likely to return to that business and even recommend it to others. 
In a world with countless consumer options, standing out with exceptional customer service can make all the difference. Improving customer service is crucial for any business looking to stay competitive in today's market.
Strategies for improving customer service
Invest in employee training to equip staff with the necessary skills and knowledge to handle customer inquiries and complaints professionally and empathically.
Collect customer feedback to identify areas of improvement for products, services, and overall customer experience.
Implement technology solutions such as chatbots or knowledge bases to assist customers and streamline the resolution process immediately.
The importance of the customer experience
The significance of customer experience transcends the essential act of selling products or services; it's about crafting stories and memories that customers carry with them long after a transaction. A superior customer experience fosters an emotional attachment to the brand, transforming casual customers into passionate advocates and vocal supporters. 
Where choices are plentiful and attention spans are short, construction businesses that focus on delivering memorable customer experiences will not only distinguish themselves from competitors but will enjoy enhanced customer loyalty, increased satisfaction, and, ultimately, improved business outc

This Podcast Is Episode 575, And It's About  A No-fuss Record-keeping Guide For Your Construction Business Managing a hectic schedule and complex projects can be challenging if you're a contractor. You must also ensure that your paperwork, documents, and contracts are in order. It's essential to keep a paper trail of your work and practice due diligence. 
Keeping all your working documents in order shows that you treat your business, customers, and subcontractors responsibly. This is a mark of professionalism and can also help if you have an insurance or legal claim.
Contractor paperwork documentation and procedures
You should develop documentation and record-keeping procedures appropriate for your contracting operation or service if necessary. Once procedures are in place, it is equally important to ensure everyone understands and follows them. 
It's good practice to hold a workshop on documentation procedures with your employees and have them sign off that they understand and have copies of the procedures.
For construction jobs, some of the documents that may be obtained and maintained as part of your documentation procedure include:
Project tenders/estimates Contracts or work orders Duty to perform documents Site inspection forms Tests on work completed Documentation for materials delivered to the site Documentation of your risk services assessment Certificates of insurance from your subcontractors Using Digital Tools and Software
Implementing project management and documentation software can significantly reduce the time spent on paperwork. These tools can help track project progress, manage invoices, and store important documents securely in the cloud for easy access from any location. 
There are many options on the market, and it's unlikely that a single piece of software will meet all of your project management needs. Companies usually combine a few applications to create a custom solution.
Remember, the accounting software you need depends on the level of reports you require. This is why we recommend choosing project management tools that integrate nicely with the parts of your setup that don't need changing.
What to look for
Real-time reporting capability
Effective construction project management requires up-to-date information. With this, you can make important decisions if you rely on guesswork, which is a lousy way to do things.
The best project management tools for the construction industry offer instant reporting.
Accessibility
Your data must be as accessible as possible. The best construction project management tools are cloud/web-based, which makes them accessible from virtually anywhere in the world.
Good Support
Incorporating even the best construction project management tools will inevitably result in hiccups. That's why you should look for programs from companies with reliable customer support.
Security
Your data is precious and sensitive, and construction project management tools and techniques should reflect this. Before you incorporate any software into your workflow, research the company behind it, its terms of use, and the security measures it implements to keep your company's data private.
Construction project management tool checklist
Here are questions to ask yourself once you've narrowed your options using the above criteria:
Does the software come with enough licenses for my company? Can I use the tool on multiple devices? Does the software have several positive reviews? Will the company demo its software for my company? Can my current data be easily transferred to this new software? Do partner companies use the same software or a program that integrates well with this one? The proper construction project management tools can make a big difference to your company and its productivity.
I hope this helps identify the best picks and what you must consider when evaluating them. 
Proper record-keeping helps you manage your finances, comply with tax laws, and make i